Self-confidence is your own evaluation of your abilities to accomplish a given task. “Stepping outside of my comfort zone” is a phrase many of us use to describe how we feel in situations where we don’t know how well we will perform or how others will respond to us.
It is the level of your self-confidence that is likely to determine what goals you will set and what actions you will take. Many individuals can be self-assured in other areas of their lives, but not feel confident when it comes to matters of money management and financial planning.
However, the best way to build self-confidence in any area of life is to take action. Each step taken will encourage you to take the next step. If you lack confidence in your financial life, start with “first things first” whether that is balancing your checkbook, organizing your records, or opening an IRA account—just do it!
Successful completion of one step towards a financial goal is what will give you the confidence and motivation to move on to the next step. In addition, make a commitment to increase your financial knowledge. Read books, take classes, and talk with a financial advisor.
Break down big goals, like refinancing your mortgage or establishing a retirement plan, into small action steps. To the uninitiated, financial decisions and processes like these can seem confusing and overwhelming. However, when viewed step by step, the tasks are manageable and easier to understand.
Accomplishing one goal will give you the courage and motivation to tackle the next financial goal. Keep reminding yourself that knowledge and action will increase your confidence, and put you in the driver’s seat of your own financial life.
Reprinted by permission of Money Quotient, NP
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